Mpumalanga, South Africa – In an ambitious move to harness the collective power of large businesses and SMEs for regional prosperity, a pioneering initiative brought together the supply chain needs of prominent corporations with the capabilities of up-and-coming small and medium-sized enterprises (SMEs). This initiative, starting off with an Access to Market event, is aimed at fostering a robust economic environment that champions inclusivity and sustained growth.
The initiative is led by esteemed ESD partners, Aurik Enterprise Development and Barberton Mines, a subsidiary of Pan African Resources, in collaboration with Barberton Mines Transformation Trust (BMTT). This partnership is designed to minimise supply chain risks, enhance business efficiency, and drive economic empowerment through targeted enterprise and supplier development strategies.
Barberton Mines’ Commitment to Transformation: Barberton Mines has been at the forefront of Enterprise and Supplier Development (ESD) since 2021, focusing on creating a more inclusive supplier landscape and enhancing diversity and gender representation. The company’s dedicated ESD programme seeks to empower local SMEs, promote local sourcing, facilitate skills transfer, and ensure sustainable community benefits well beyond the lifespan of mining activities.
Aurik’s Expert Approach to SME Development:
Aurik Enterprise Development stands out with its bespoke ESD solutions. Aurik’s strategy encompasses comprehensive service offerings including strategic planning, sourcing and selection, with a focus on localisation, and innovative fund management. The company boasts a proven track record with SMEs observing an average profitability increase of 131% year on year, demonstrating Aurik’s commitment to delivering impactful and sustainable business growth.
The Access to Market event, hosted by Enhlanzeni District Municipality, provided a platform for Mpumalanga’s businesses to outline their supply chain needs and explore opportunities for collaboration with skilled entrepreneurs facilitated by Aurik.
It also allowed suppliers to express their experiences of working with large companies, and their interests in future opportunities.
This event was a critical step towards building a resilient economic structure in Mpumalanga, ensuring that all stakeholders can thrive together in a mutually beneficial ecosystem.
By fostering a dynamic partnership between established corporates and agile SMEs, it catalyses an ecosystem where collaborative efforts lead to shared prosperity. The Access to Markets initiative sets a foundation for a thriving, inclusive economy that not only meets today’s needs but also anticipates tomorrow’s challenges.
Ends
For more information on participating in the Access to Markets initiative, please contact Prosper Mukwakwami prosper@aurik.co.za
Sage is the global market leader for technology that helps businesses of all sizes manage everything from money to people – whether they’re a start-up, scale-up or enterprise business. Sage does this through Sage Business Cloud – the one and only business management solution that customers will ever need, comprising Accounting, Financials, Enterprise Management, People & Payroll and Payments & Banking.
Sage is committed to doing business the right way and giving back to our communities by contributing meaningfully to sustainable transformation to support small businesses. Sage Transformation plan is aligned with the National Development Plan to address inequality and unemployment to accelerate the participation of previously disadvantaged individuals to the South African economy. Sage also believes that the focus should be on true transformation and making a difference to the lives of all South Africans.
Sage is inviting small black owned businesses to participate in the Sage Independent Software Development Programme. The SMEs will be empowered and developed to strengthen their business systems to enable them to expand their customer base; increase their turnover and profitability and scale their operations on a sustainable basis.
Qualifying Criteria for the small businesses include:
Years in operation: 3 – 5 years
51% Black Owned businesses generating a revenue not more than 10 million (EME).
Have a proven track record of software development in technology solutions, either developed or currently in development phase.
Be willing to enter a commercial partnership with Sage.
Other additional technical criteria will be discussed at the briefing planned for the 27 May 2024.
If you are interested, please complete the form confirming your interest to the programme and your interest to attend the briefing for this opportunity!
Please note the last day to RSVP is 24th May 2024, 12:00 noon.
Finding funding for a start up or early stage business is extremely challenging. You need to crystal clear on what the funds will be use for, how, when and how your funder or investor will earn their return. Tune in to this podcast of The Money Show as Pavlo Phitidis digs deeper into what you need to consider before you apply for start up funding.
Why do you need funding?
You should be seeking funding to solve a problem. You need to understand clearly who your customer is and what problem you’re going to solve for them. And through this deep understanding of the problem, and the value you can bring by solving it, you can excite a funder to listen further.
The questions that will flow once you’ve gained their enthusiasm will be around the following:
Timing – Timing is crucial when it comes to starting a business. Legislation and affordability can play a role in determining the best time to launch a business, and funding is necessary to take advantage of the right opportunities at the right time.
Legislation – New laws and regulations can open up new opportunities for businesses. Funding is necessary to stay ahead of these changes and take advantage of them.
Affordability – The cost of goods and services can fluctuate, and funding is necessary to take advantage of lower costs when they are available.
Also be clear on what you will use the funding for. It can be used for a variety of purposes, such as purchasing equipment, inventory, and real estate, or for hiring staff.
New/Used – Funding can be used to purchase new or used equipment, inventory, and real estate, depending on the needs of the business.
Secured/Unsecured – Funding can be secured or unsecured depending on the lender and the needs of the business.
Offices – Funding can be used to rent or purchase office space, depending on the needs of the business.
Applied when – Funding can be used at different stages of a business, such as during the launch phase or for expansion.
Milestones – Funding can be used to reach specific milestones, such as the launch of a new product or service.
Burn but earn your stripes – funding can be used to sustain the business through the early stages, but it’s important to have a plan to eventually earn a profit and pay back the funding.
Applied if – Funding can be used for a variety of contingencies, such as unexpected expenses or changes in the market.
Rent – Funding can be used to cover rent or mortgage payments for the business.
Alternatives – Funding can be used as a backup plan in case other sources of funding fall through.
Collaborate – Funding can be used to collaborate with other businesses or organizations to achieve common goals.
In this podcast of The Money Show Pavlo Phitidis digs deeper into what you need to consider before you apply for start up funding.
Equity funding involves selling a portion of the business in exchange for funding. This can be beneficial for businesses that have a high growth potential.
Debt funding involves borrowing money that must be paid back with interest. This can be beneficial for businesses with a steady cash flow.
A mix of different types of funding, such as debt and equity, can be beneficial for a new business. This can help to balance the risk and reward of the venture.
As a start-up you cannot turn to a bank, nor should you because you don’t want to raise debt that you need to start paying back the next month.
You want to secure funding that allows you to spend, to invest in the business before you have to start paying it back.
What are the sources of funding Private Individuals – Private individuals, such as friends and family, can be a source of funding for a new business. They will be very interested in you – your skills, experience knowledge, values and will usually be familiar to you.
Suppliers – Suppliers may be willing to provide funding in exchange for a long-term contract.
Customers – Customers may be willing to provide funding in exchange for a stake in the business or early access to products or services.
Employees – Employees may be willing to provide funding in exchange for a stake in the business or a share of the profits.
Government – Government agencies may provide funding for businesses in certain industries or for businesses that meet certain criteria.
Corporates – Corporations may provide funding in the form of grants or investments. In south Africa it tends to be available to 51% or more black owned business as part of their BBBEE requirements, and the dispensation of these funds is highly structured.
Self and Smarts – Funding can be generated by using personal savings, credit cards, and other personal resources.
Banks – Banks may provide funding in the form of loans or lines of credit.
Venture Capital – Venture capital firms may provide funding for businesses with a high growth potential. VC is not huge in South Africa, certainly not in start-ups. Venture Capital tends to favour established successful businesses with new ideas or developments.
So, how can you succeed in securing funding from one or more of these funders?
Know how – Having knowledge about the industry, the market, and the problem being solved is crucial to the success of a new business.
Skills – Having the necessary skills to operate and manage a business is important for success.
Relationships – Building relationships with suppliers, customers, and industry leaders can be vital to the success of a new business or the expansion of a growing business.
Experience – Having experience in the industry and in running a business can be a major advantage as funders will see that you know what it takes.
Skin in the game – Investing your own money and resources into a new business can show investors and lenders that you are committed to the success of the venture.
Think like a funder and ask “What will I get in return?”
The return on investment for a new business can vary greatly depending on the success of the venture. Investing in a new business always carries a certain level of risk. It’s important to carefully consider the potential returns and risks before making a decision to invest. Help to paint that picture for the potential funder.
